On the go: Positive changes resulting from the next valuation of the Universities Superannuation Scheme should be used to improve member benefits, Loughborough University and the University and College Union have argued.
In a joint statement issued on May 10, they urged the USS not to reduce employer or employee contribution rates from current levels, in the latest escalation of the ongoing USS pensions saga.
The statement said: “There should be an evidence-based, moderately prudent valuation as soon as possible.
“Employers should continue to provide enhanced covenant support through the future valuation process and recognise that this should apply to any benefit proposals agreed [through the Joint Negotiating Committee] by either UUK or UCU,” it added.
Loughborough University and the UCU said keeping the defined benefit element of the scheme that is affordable for employers and members, sustainable and at a contribution rate that will not discourage employees from participating in the USS, is a “necessary requirement to settle this series of disputes”.
The national parties involved in the USS pension negotiations must work towards building and restoring trust, and this should be a significant priority, the statement added.
The union has called for a new valuation several times, saying it would account for substantial improvements in scheme finances since the 2020 valuation was conducted.
In response to the joint statement, a USS employers’ spokesperson from Universities UK said: “Employers are focused on the future, including improving the scheme by developing lower-cost options for members, considering alternative scheme designs, and conducting a thorough governance review of USS with independent, external expertise.”
It comes as university staff have taken up to 15 days of strike action over the pensions dispute so far this academic year.
Pensions Expert reported recently that the universities’ employer body has asked the USS trustee to provide a fuller update on the funding position as of March 31 2022, which it understands will be available in late May.
Industrial action is part of the ongoing dispute regarding the 2020 valuation process that the UCU claims cuts benefits by up to 35 per cent.
On April 26, delegates at a meeting of the UCU’s special higher education sector conference made a decision to couple the boycott with another bigger boycott over pay and working conditions, and delegates also voted in favour of 10 days of strike action at 40 of the universities.
